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2. Table of
Contents
Current Situation Analysis
ˆ Current Challenges Faced by Our Company
ˆ Company’s Current Cost of Production
ˆ Per Product Cost Comparison with Competitors
ˆ Losses Incurred Due to lack of Automation
Why Do We Need Automation?
Operations Strategy Optimization and Automation Techniques
ˆ Specialization of Operations Strategy
ˆ Combined Operations Strategy
ˆ Simultaneous Operations Strategy
ˆ Automation Techniques with its Impact on Job Completion
Financial Analysis
ˆ Equipment Manufacturers and their Prices
ˆ Company Return on Investment
ˆ Cost of Machinery Installation
ˆ Asset Cost Analysis
ˆ Calculation of Machinery Depreciation
Implementation Plan
ˆ Timeline for Implementing Automation in the Company
ˆ Automation Training Program for Employees
ˆ Employee Training and Budget Schedule
Impact of Automation on Business
ˆ Industrial Internet of Things (IIoT) Solutions
ˆ Smart Sensor Solutions
ˆ Machine Safety Solutions
ˆ Company’s Production Forecasting
ˆ Effect of Automation in the Company
Employee Performance Measurement Metrics
01
02
03
04
05
06
07
2
3. 01
Current Situation Analysis
ˆ Current Challenges Faced by Our Company
ˆ Company’s Current Cost of Production
ˆ Per Product Cost Comparison with Competitors
ˆ Losses Incurred Due to lack of Automation
Table of
Content 3
4. Current Challenges Faced by Our Company
The purpose of this slide is to provide a glimpse of the problems faced by our manufacturing company at present due to the lack of automation in the company which leads to performance loss.
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”
ˆ In cost due to high labor force
in the company
ˆ Text Here
ˆ Text Here
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ˆ Rectification Cost incurred by
the company due to human
error
ˆ Text Here
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ˆ Quality Loss that need
rework
ˆ Text Here
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ˆ Of idling and minor stops reduces speed
and causes Performance Loss
ˆ Text Here
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18% 8% 6% 3%
4
5. Company’s Current Cost of Production
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The purpose of this slide is to provide a glimpse of the variety of production expenses incurred in our company such as labor, raw material, operating, etc. Evaluation is made of such costs for different products.
Particulars Product 1 Product 2 Product 3
Direct Material Cost $ 76 $ 86 $ 78
Direct Labor Cost $ 4 $ 2 $ 1
Factory Overhead Cost $ 8 $ 4 $ 6
Operating Expenses $ 6 $ 3 $ 7
Add Text Here xx xx xx
Add Text Here xx xx xx
Total Production Cost xx xx xx
5
6. ˆ A company should use the strategies followed by
competitor 2 to have better hold in the market
ˆ Add Text Here
ˆ Add Text Here
01
02
03
Per Product Cost Comparison with Competitors
Competitor
Overview
Our Company
Competitor
1
Competitor
2
Competitor
3
Competitor
4
Product 1 $225 $205 $175 $215 $235
Product 2 $175 $195 $145 $158 $162
Product 3 $525 $515 $475 $492 $505
Product 4 $318 $327 $298 $309 $305
Product 5 Text Here Text Here Text Here Text Here Text Here
Product 6 Text Here Text Here Text Here Text Here Text Here
Product 7 Text Here Text Here Text Here Text Here Text Here
Product 8 Text Here Text Here Text Here Text Here Text Here
The purpose of this slide is to provide a glimpse of the product cost comparison between our company and the competitors to get an overview of the market.
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6
7. Losses Incurred Due to Lack of Automation
$4m $5m $17m $33m $39m $72m
$128m
$66m
$150m $182m
-$99m -$80m -$97m -$98m -$105m -$116m -$124m
-$170m
-$1200m
-$443m
Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Revenue Net Loss
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ˆ Even though the company saw its revenue
rise 153 percent on the same period last
year to $181.7 million, its losses nearly
quadrupled to $443 million.
ˆ Add Text Here
ˆ Add Text Here
01
02
03
The purpose of this slide is to provide a glimpse of losses incurred by our company in various quarters for three years simultaneously.
7
9. Slow Turnaround Time
11% Low Productivity
Due to lack of sensors and actuators in
the company
Potential for Mass Customization
34% of the customers demand
personalized products
High Error Rate
18% Due to human failure rates and
poor performance
Up-to-date Technologies
Manufacturers could boost their overall
value by 20% due to introduction
of new latest technologies
Why Do We Need Automation?
The purpose of this slide is to provide a glimpse of challenges faced by our company such as slow turnaround time, outdated technologies, error rate etc. arises the need for automation.
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9
10. 03
Operations Strategy Optimization
and Automation Techniques
ˆ Specialization of Operations Strategy
ˆ Combined Operations Strategy
ˆ Simultaneous Operations Strategy
ˆ Automation Techniques with its Impact on Job Completion
Table of
Content 10
11. Specialization of Operations Strategy
Equipment 01
Task 1-
Processing
Equipment 02
Task 2-
Assembly
Equipment 03
Task 3-
Inspection
Key Takeaways
ˆ Special purpose equipment will be designed to perform each operation with the
greatest possible efficiency.
ˆ Improves labor productivity.
ˆ Text Here
The purpose of this slide is to provide a glimpse of specialization of operations strategy wherein different types of equipment focuses on a particular operation leading to labor specialization.
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11
12. Simultaneous Operations Strategy
Key
Takeaways
ˆ Operations are performed at one workstation to carry out simultaneously.
ˆ Reduce the total processing time resulting in a greater increase in productivity.
ˆ Text Here
1.8
Sanding
units/hr
5
Drilling
units/hr
5
Welding
units/hr
0.7
Assembly
units/hr
0.7
Assembly
units/hr
0.7
Assembly
units/hr
2.4
Sawing
units/hr
The purpose of this slide is to provide a glimpse of the simultaneous operations strategy wherein all the operations are performed at one workstation, thus increases productivity.
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12
13. Combined Operations Strategy
Key
Takeaways ˆ Performs more than one operation at a given machine , thereby reducing the number of separate machines needed
ˆ Setup time, material handling effort and non-operation time are reduced.
ˆ Text Here
Task 1 Processing
Task 2 Assembly
Task 3 Material Handling
Task 4 Text here
Task 5 Text here
Task 6 Text here
Equipment1
Equipment2
The purpose of this slide is to provide a glimpse of combined operations strategy wherein one equipment will focus on different operations, thus reducing the need for separate machines.
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13
14. Automation Techniques with its Impact on Job Completion
Task Performed Solution Impact on Labor Impact on Cost
Task 1- Assembly Use sensor for reducing scrap 20% labor reduction 15% decrease in cost
Task 2- Processing Usage of automated control valves 25% labor reduction 12% decrease in cost
Task 3- Add Text Here
Emergency automatic shutdown in case
of excess heat
10% labor reduction 22% decrease in cost
Key
Takeaways
Considering 3 tasks are performed to complete one round of a particular job
Add Text Here
Add Text Here
The purpose of this slide is to provide a glimpse of the automation techniques with its solution and evaluating its impact on labor and cost after completing one job.
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14
15. 04
Financial Analysis
ˆ Equipment Manufacturers and their Prices
ˆ Company Return on Investment
ˆ Cost of Machinery Installation
ˆ Asset Cost Analysis
ˆ Calculation of Machinery Depreciation
Table of
Content 15
16. Equipment Manufacturers and their Prices 1/2
The purpose of this slide is to compare various equipment manufacturers and evaluate the prices offered by them to our firm.
Manufacturer’s
Name
Equipment
Name
Price
Company A Equipment 1 $ 275
Company B Equipment 2 $ 272
Company C Equipment 3 $ 246
Company D Equipment 4 $ 296
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16
17. Equipment Manufacturers and their Prices 2/2
01
Equipment
Name
02
Equipment
Name
03
Equipment
Name
Price
$225
Price
$272
Price
$246
Company
Logo
Company
Logo
Company
Logo
01 02 03
The purpose of this slide is to compare various equipment manufacturers and evaluate the prices offered by them to our firm.
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17
18. Company Return on Investment
= ROI
Return (Benefit)
Investment (Cost)
20%
ROI
0
100
200
300
400
500
600
700
800
900
50 100 150 200
AMOUNT(IN$MILLIONS)
TIME (IN HOURS)
Sales Profit Cost
This graph depicts the calculation of return on investment after automation based on sales, profit, cost, and time.
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18
19. Cost of Machinery Installation
Particular Amount
Machinery Cost $ 48752
Fees $ 250
Utility Repair and Upgrade $ 160
Shipping and Delivery Cost $ 175
Installation and Warranty $ 700
Add Text Here xxxx
Add Text Here xxxx
Total Cost $ XXXX
The purpose of this slide is to provide a glimpse of the installation cost of machinery which covers all quantifiable facets of a purchased asset, this is the original cost recorded on the balance sheet.
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19
20. Asset Cost Analysis
Particular Amount
Depreciation Cost $ 5799
Service Cost $ 5200
Preventive Maintenance Cost $ 1200
Operating Cost $ 845
Disposal Cost $ 700
Add Text Here $ xxxx
Add Text Here $ xxxx
Total Cost $ XXXX
The purpose of this slide is to provide a glimpse of the asset cost analysis to optimize the company’s asset management
which covers costs of depreciation, service, operating, disposal etc.
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20
21. Calculation of Machinery Depreciation
Beginning Book
Value
Total Depreciable
Cost
Depreciation
Rate
Depreciation
Expenses
Accumulated
Depreciation
Ending Book Value
$1000 $800 $33.33% $266.67 $266.67 $733.37
$733.33 $800 $26.27% $213.33 $480 $520
$520 $800 $20% $160 $640 $360
$360 $800 13.33% $106.67 $746.67 $253.33
$253.33 $800 6.67% $53.33 $800 $200
Year 1
Year 2
Year 3
Year 4
Year 5
The purpose of this slide is to provide a glimpse of the machinery depreciation calculation for the next 5 years after automation covering book values, depreciation rate, expenses, accumulated depreciation etc.
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21
22. 05
Implementation Plan
ˆ Timeline for Implementing Automation in the Company
ˆ Automation Training Program for Employees
ˆ Employee Training and Budget Schedule
Table of
Content 22
23. Timeline for Implementing Automation in Our Company
Identify
Repetitive Tasks
Choose best
equipment for
your model
Install the
machine within
the company
Deployment phase
and make
improvements
accordingly
Train the
Users
Implementation
Milestone
1
Milestone
2
Milestone
3
Milestone
4
Milestone
5
Milestone
6
23
July
02
August
12
August
14
August
02
August
02
August
The purpose of this slide is to provide a glimpse of the automation implementation timeline wherein details of various tasks are mentioned which are to be executed to implement automation in the company.
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23
24. Automation Training Programs for Employees
A
Team
Add Text Here
Add Text Here
Add Text Here
Add Text Here
B
Team
Add Text Here
Add Text Here
Add Text Here
Add Text Here
Team
Add Text Here
Add Text Here
Add Text Here
Add Text Here
Program 1-
Automation Learning Path
Program 2 -
Automation Architect
Program 3 -
Automation from Beginners to
Advance
C
The purpose of this slide is to provide a glimpse of the employee training programs in our company necessary to expand the knowledge base for automation.
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24
25. Employee Training and Budget Schedule
Types of Workers Programs Provider Training Date Duration Budget
Type A- Blue Collar
Worker
Automation Learning Path In-house 07/12/19 4 Days Not Applicable
Type B- Purple Collar
Automation Architect Mr. X 07/22/19 5 Days $ 225
Automation from
Beginners to Advance
Mr. Y 07/29/19 3 Days $475
Type C- Add Text Here Automation Learning Path In-house 07/12/19 4 Days Not Applicable
The purpose of this slide is to provide complete information about the employee and the training program they are attending including the company’s budget for a particular program.
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25
26. 06
Impact of Automation on Business
ˆ Industrial Internet of Things (IIoT) Solutions
ˆ Smart Sensor Solutions
ˆ Machine Safety Solutions
ˆ Company’s Production Forecasting
ˆ Effect of Automation in the Company
Table of
Content 26
27. Industrial Internet of Things (IIoT) Solutions
17% failures
are predicted which prevents unplanned downtime
Remote monitoring of edge services provides factories with insight and
25% of visibility
into the performance of their machines, processes, and people
12% in waste
which increases overall equipment effectiveness (OEE)
32% workers
can leave their workstations and find a manager when they need
assistance
The purpose of this slide is to provide a glimpse of the industrial internet of things (IIoT) describes the technologies that connect industrial field devices, such as
sensors, cloud.
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27
28. Multicolor packaging is
improvised and
removes 97% of
inconsistent sensor readings
Helps in
detecting dark objects
such as solar wafers or
automotive parts
48% quality
due to high speed processes
and reliable detection and
measurement solutions
The purpose of this slide is to provide a glimpse of smart sensor solutions such as multicolor packaging, dark objects detection etc. leads to time and cost-saving.
Smart Sensor
Solutions
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28
29. Company’s Production Forecasting
400
600
900
1500
1800
2000
2200 2300
2400 2500
2600
300
500
700
1200
2200
3100
3700
4200
4300 4400 4500
-1000
0
1000
2000
3000
4000
5000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Loss Gain Net
Productivityin$(inthousands)
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This graph defines the growth of a company’s production after introducing automation in the company. The main focus is on loss, gain and net values for previous and forecast productivity.
29
30. Effect of Automation in Our Company
16%
Increase
in Profit
96%
Repeat
Customer
Rating
35%
Increase in
Production
8%
Reduced
Operational
Expenses
12%
Footprint
Balancing
52%
Technology
Incubation
Helps in rebalancing the global
operations such as expansion
and mergers
Critical technologies techniques
are introduced due to automation
This slide focuses on the impact analysis of automation on our company wherein we are focusing on our profits, production, technologies etc.
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30
32. Employee Performance Measurement Metrics
97%
=Market Compensation Ratio
(Average Years)
Top Talent Turnover Rate
(Percentage for Period) 13% +6.2%
+1.5%
Training Hour Per FTE
(Percentage Rate)
4%
Vacancy Rate
(Percentage) -6.2%
+0.5%95%
Compo Ratio
(Rate)
0
4
8
12
16
20
Q2,2018 Q3,2018 Q4,2018 Q1,2019 Q2,2019
Turnover(%)
Turnover Rate (Percentage for Period)
Voluntary Involuntary
+3.5%7.3%
0
3
6
9
12
0
20
40
60
80
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018
Direct Compensation Change
(Based On Direct Comp Per FTE)
6.9% +3.2%
1.6
Performance Based Differential
(Percentage for Period)
-3.6%
2.5%
External High Ratio
(Percentage for Period)
+0.2%
13%
Internal Movement
(Percentage for Period)
=
Headcount Flow
During Q2 2018
-2.5%
345
OUT
142
IN
15%Flow Through Rate
(Employee Count)
+0.9%
Span Of Control
(Average)
7.2 +0.5%
4.8
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32
35. Business Automation
Roadmap
03
02
01
04
Text Here
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Text Here
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Text Here
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35
36. 30 60 90 Days Plan
30
Days
Text Here
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to your needs and capture your
audience's attention.
90
Days
Text Here
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60
Days
Text Here
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audience's attention.
36
37. Monthly Timeline with Task Name
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Task Name
Task Name
Task Name
Task Name
Task Name
Text Here
Text Here
Text Here
Text Here
Text Here
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37
38. How Does Automation Ensure Product Quality?
Design and Specification
ˆ To deliver accurate
designs and
specifications to meet
client standards and
requirements
ˆ Usage of highly accurate
laser cutting machines
98%
accurate
Computer Controlled
Laser Cutting
01
Design and Specification
Robot manipulates a
tool to perform a
process on the work
part.
Spot welding,
spray
painting etc.
02
Assembly and Quality Control
Automation will fasten
the work and will be
done in accurately on
time
On
Time
03
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38
39. Process
5. Planning and Scheduling
4. Real Time Optimization
3b. Multivariable and constraint control
3a. Regulatory Control
52. Safety environmental/equipment protection
1. Measurement and actuation Sensor, transmitters, control valves etc. are interfaced with control system digitally
Emergency shutdown and alarm management
Control loop performance monitoring
Advanced control technique like model predictive control
Parameter estimation, supervisory control, data reconciliation
Demand forecasting, raw material and product planning, supply chain management
Machinery Process Control and Optimization Solution
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39
40. How Plant Operations
can be Controlled?
28% time is saved for automation dispatching by improving its
efficiency and accuracy
12% cost saving due to automated expediting to follow up with
materials, work-in-progress and assembly
24 hours working due to automated inspection resulting in high
productivity and better results
Automatic evaluation helps to identify weak spots and execution of
corrective actions
01
02
03
04
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40
41. How does Automation Impact the Business?
Changes/Impact Equipment 1 Equipment 2 Equipment 3 Equipment 4 Equipment 5 Equipment 6
Efficiency 3 1 2
Productivity
Accuracy
Progress Tracking 3 2 3
Flexibility
Collaboration
High
Impact
Moderate
Impact
Low
Impact
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41
42. Cost Benefit Analysis
Quantitative Analysis Year 1 Year 2 Year 3 Total
Non-recurring costs
hardware $ -
servers $ -
desktop $ -
Telecommunication equipment $ -
Software (packaged or custom) $ -
Computer room upgrades $ -
Furniture and fixtures $ -
Project (upon approval) $ -
Procurement $ -
Contract negotiations $ -
Labour $ -
Infrastructure $ -
development $ -
Business process owners (users) $ -
Management $ -
Training of employees (pre-implementation) $ -
Transition costs (parallel systems) $ -
Post implementation reviews $ -
Total non-recurring costs $ - $ - $ - $ -
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42
43. Automation Maturity Model and Transformation Journey
Ad Hoc & Task
based
Automation of Isolates
tasks
Heuristic & Rule based
automation
Predictive &
Preventive
Autonomous
Reactive
Initiate and imitate Human
Action
Anticipates Learns & Predicts
Imitates Human
Intelligence
ITSM & Monitoring
Tools
Point
Scripts/RPA
Orchestration Analytics Machine Learning Deep Learning & AI
Level 1 Level 2 Level 3 Level 4 Level 5
Capability
Intelligence
Technology
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43
44. Integration of Operations Strategy
Text
Here
• Several workstations linked together into a single integrated mechanism
• Automated work handling devices are used to transfer parts between stations
• Increases the overall output of the system
• Text Here
Automation using
conveyor belt
Automation using
conveyor belt
Material Handling
Workstation 3
Processing
Workstation 1
Assembly
Workstation 2
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44
45. Job Shop Strategy to Increase Flexibility
Shop
Job 2
Job 1
Equipment 1
Equipment 2
Equipment 3Job 1
Job 2
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45
46. Real Time Inspection Strategy
Inspection
Output units
Manufacturing process
Incoming workparts Text Here
Feedback data from inspection
to process
Text
Here
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46
47. Computer-integrated manufacturing (CIM) Strategy
Computer
Based
Database
Customer orders
Production system Products
Calculation of
material
requirements
Design
Technical data
Strategic
Plan
Production plan
Market, strategies
projects
Quality
performance
What and
when?
purchases
Results,
Simulation
Simulation,
Validation
Performance
Costs,
capabilities
Proposals
Planning
Request for estimates
how?
What and
when?Monitoring
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47